Century Mining offers stock; OceanFreight takes equity line; Infinito plans notes; Maudore wraps deal

By Kenneth Lim

Boston, Feb. 2 - Century Mining Corp. plans to raise $66 million through a placement of stock, warrant and gold units to help fund a gold project.

OceanFreight Inc. negotiated a $147.89 million equity line with YA Global Master SPV Ltd. for the next two years.

Infinito Gold Ltd. plans to raise up to C$50.5 million through a sale of convertible notes to two major shareholders.

Platinum Australia Ltd. raised A$14.58 million through a stock placement, while Maudore Minerals Ltd. took in another C$2.25 million from a sale of shares that it said will fund it through 2010.

Century Mining to sell units

Century Mining will sell $66 million through a placement of units that comprise stock, warrants as wells as gold that the company will mine.

The company is offering 15,000 units at $4,400 apiece. Each unit comprises 600 common shares, 1,000 warrants and 5 troy ounces of gold.

Century common stock (TSX: CMM) slipped 6.67% or C$0.005 to close at C$0.07 on Monday. The company has a market capitalization of C$11.8 million.

Proceeds will be used to develop the Lamaque project in Quebec, to fund working capital and to pay down liabilities.

Century is a gold mining company based in Blaine, Wash.

"The board of directors and management consulted financial advisors and reviewed numerous alternatives for the Lamaque project, including mergers, joint ventures, high-yield debt and other facilities with senior lending institutions," Century president and chief executive Margaret Kent said in a statement. "Based on these consultations, management determined that in a robust gold market and with a positive outlook for gold, it is in the best interests of Century's shareholders to minimize dilution with a gold-based financing alternative. Octagon Capital Corporation reviewed available information from the Fortis financing due diligence process and has agreed to be lead agent for the offering."

OceanFreight in YA Global deal

OceanFreight agreed to a $147.89 million two-year equity line with YA Global Master SPV.

OceanFreight may draw down on the equity line during the term of the facility. The shares that will be sold to YA Global will be priced at a 1.5% discount to the stock's volume-weighted average price.

Shares of OceanFreight (Nasdaq: OCNF) dropped 17.05% or $0.60 to close at $2.92 on Monday. The company has a market capitalization of $48 million.

Proceeds will be used to repay debt, for capital expenditures, working capital, to make vessel acquisitions, for general corporate purposes and, if needed, to enhance liquidity and assist with loan covenants.

OceanFreight is an Athens, Greece-based development-stage company. Its fleet consists of nine secondhand drybulk carriers that mainly transport iron ore, coal, grains, minerals and fertilizers and two secondhand tanker vessels that transport crude oil.

The company had also sold 4 million shares to YA Global in the fourth quarter of 2008. That deal gave OceanFreight net proceeds of $50.9 million.

Infinito sells to shareholders

Infinito Gold plans to place up to C$50.5 million of five-year 15% convertible secured notes to two of its major shareholders.

Exploram Enterprises Ltd. and Auro Investments Ltd. will buy an initial C$42.5 million of the notes, and Infinito may draw down up to C$8 million in the notes from Exploram in the future.

The convertibles are initially convertible at C$0.204 per share. The investors will also receive warrants for a number of shares equal to the number of shares issuable upon conversion of the notes. Each five-year warrant has an exercise price at C$0.204.

Infinito common stock (TSX: IG) closed at C$0.15 on Monday, lower by 14.29% or C$0.025. Infinito has a market capitalization of C$18.2 million.

Proceeds will be used to retire Infinito's C$37.5 million of outstanding notes and debentures, pay $910,000 of interest on that debt, and for working capital and general purposes.

Infinito Gold is a Calgary, Alta., advanced gold exploration company.

Exploram and Auro are existing major shareholders of Infinito.

Platinum raises A$14.58 million

Platinum Australia completed a A$14.58 million private stock placement.

The company sold 27 million ordinary shares at A$0.54 per share. Platinum Australia common stock (ASX: PLA) closed unchanged at A$0.565 on Monday. The company has a market capitalization of A$124.3 million.

Proceeds will be used to fund a reduction in the overall debt of the company's Smokey Hills project and for general working capital.

Platinum Australia is a West Perth, Australia, miner of platinum group metals.

Maudore wraps financing

Maudore Minerals took in a final C$2.25 million tranche in a non-brokered private stock placement.

The company earlier raised C$589,464 in the initial tranche on Jan. 19.

The latest tranche comprised about 1.85 million common shares at C$1.22 apiece. Maudore common stock (TSX: MAO) closed at C$1.67 on Monday, lower by 4.57% or C$0.08. The company's market capitalization is C$26.7 million.

London-based Loeb Aron & Co. Ltd. and Anglo Pacific Group plc, Maudore's largest shareholder, were among the investors in the latest financing.

Shares in the initial tranche were also sold at C$1.22 per share. The company also sold about 630,000 flow-through common shares at C$1.60 each in December for about C$1 million. Including that first deal, the company has now raised about C$3.85 million.

With additional funds expected from the Province of Quebec as rebates of mining exploration expenditures, Maudore is now funded through 2010 for exploration of the high-grade Comtois gold project and other targets on Maudore properties, the company said in a statement.

Maudore is a mineral exploration company based in Montreal.

"In the current economic climate, a company's primary responsibility is to ensure viability under all scenarios," Maudore president and chief executive Ron Shorr said. "We now have sufficient funds to continue operating two drills for both 2009 and 2010, thus ensuring continued aggressive exploration of our projects. Most of the subscribers are return investors enhancing their MAO share positions. We're very gratified by this vote of confidence in Maudore's management and the Comtois project's potential."

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